566 CHINA AND THE UNITED STATES. 



llaviiim' rccoo-nizcd tliis orcat ])riiK'i})U' of iiitcniiitioiKiI iiitcrcourso, 

 how shall Avc apply it to tlu> case of China tiiul the Tnited States in 

 .such a iiiaiuier as to result in mutual helpfulness^ Assuredly, the 

 Hist thin*;- to do is to take a o-eneral sui-v(\v of the situation and see 

 what are the present needs of each o«-)untry. Then we shall perceive 

 clearly how each may help the other to a hij^her plane of material 

 development and prosperity. 



The United States now has its industrial maehinery i)erfectl3' 

 adjusted to the production of wealth on a scale of unprecedented maj^- 

 nittide. Of land, the first of the threi^ ajj^^'nts of })roduction eiuimer- 

 atcd liy economists, the Fiiited States is fortunately l)lessed with an 

 almost uidimited amount. Its territory stretches from ocean to ocean, 

 and from the snows ()f the Arctic Circle to the broilino- sun of the 

 Tropics, ^Vithin these limits are found all the products of soil, forest, 

 and mine that are useful to man. AN'ith respect to labor, the second 

 aji'cnt of production, the Tnited States at first naturally suffered the 

 disadvanta*,^' common to all new countries. But here the j^enius of 

 the peoi)le came into ])lay to relieve the situation. That necessity, 

 which is "the mother of invention," substituted the sewing- machine 

 for women's Hnj^ers, the ^IcC'ormick reaper for farm hands, the cotton 

 gin for slaves. The etticiency of labor was therein' nmltii)lied, in 

 many cases, a hundredfold. The inirenious manner in which capital, 

 the third a^'ent of jiroduction, is put to a ])rotitable use, is e<pially 

 chai'acteiistic of America. Jt is well known that there is an enoi'mous 

 amount of capital in this country seekinjj investment. Everyone 

 who has a little to invest \vishes to olitain as lary^e a return as possi- 

 })le. Since competition reduces profits. th(> formation of industrial 

 combinations, commonly called trusts, is foi- the capitalist the logical 

 solution of the difliculty. These enal)le the vast amount of ca])ital 

 in this country to secure the best results with the greatest economy. 

 Whether tlu'v secure " the greatest good to the greatest number" is 

 another matter. 



The (level()])ment of the resources of the United States by the use of 

 nuuliinery and by the combination of capital has now reached a point 

 which may l)e termed critical. The j)roductive power of the country 

 increases so much faster than its capacity for consumption that the 

 demand of a population of 75,000,000 is no sooner felt than supplied. 

 There is constant danger of overproduction, with all its attendant con- 

 sequences. Under these circumstances, it is imperative for the farm- 

 ers and manufacturers of the United States to seek an outlet for their 

 products and goods in foreign markets. But whither shall they turn ^ 



At first sight Europe presents perhaps the most inviting field. Both 

 blood and association point in this direction. But here the cottons of 

 Lowell would have to compete with the fabrics of Manchester, The 

 silk manufactures of Paterson would stand small chance of supplant- 



